I was asked a very good question the pother day in regards to a short sale in arizona and one’s credit. The woman was very nice and simply wanted to know if the effect on her credit would be more severe with a short sale and missed payments or a foreclosure. The answer to this question is very simple. A short sale in arizona is always going to be better than a foreclosure. Everyone’s credit is different, so you can never be exactly positive with short sales. A good general rule is a short sale hits your credit 125-150 plus your missed payments and a foreclosure is roughly 250 points plus your missed payments. Theoretically, the best scenario would being completeling a short sale without missing any payments. This would have the best affect on your credit. As I explained to this woman, this scenario is exetremely unlikely and isn’t really possible. Banks don’t consider short sales unless the homeowner is behind on payments. Thats the bottomline. I know this goes past all logical thinking and reasoning but they just don’t.
Thanks for reading and come back for more about Arizona short sales and foreclosure help.
- Jeff Buettner
Real Estate Wiz Kid
Arizona Short Sale Realtor & Negotiator
Who can help me with a Scottsdale short sale? I am in need of some Arizona foreclosure help now!
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This article is very true. I’ve spent months trying to contact me lender to arrange a short sale. They don’t return my calls! It’s all because I’m on time with my payments. I’m sure once, I start missing a couple payments they finally call me.
Thats interesting. I knew that a foreclosure was worse than a short sale but I never knew the exact numbers. 250 points really seems to pretty much kill a credit score that would bump someone from 730 which is pretty good to 480 which is pretty much dead in the water. Its just one more reason that people should really consider shortsales when its an option for them.
Jill-
You can see now that short sales don’t completely relieve you but they are clearly better than foreclosures.
Thanks for reading
Jeff